FOMC

Cryptocurrency

Jerome Powell

Bitcoin

Impact

The post <a href="https://coinpedia.org/news/analyzing-the-impact-of-the-latest-fomc-meeting-on-bitcoin-and-cryptocurrency-markets/">FOMC Meeting Updates Revealed: Here’s How Crypto Markets Are Reacting</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
The much-anticipated decision from the Federal Reserve about May’s interest rates is out. In today’s <a href="https://coinpedia.org/news/crucial-week-ahead-for-crypto-market-what-you-need-to-know/">Federal Open Market Committee (FOMC)</a> meeting, they decided to keep interest rates the same, sparking optimism in the cryptocurrency community. 
What impact should you expect? Read on! 
<h2 class="wp-block-heading" id="h-interest-rates-hold-firm">Interest Rates Hold Firm</h2> 
Chairman Jerome Powell, in today’s FOMC meeting, announced that interest rates will remain unchanged, hovering between 5.25% to 5.5%. Despite expectations for rate cuts to boost economic growth, the Fed stands firm. Powell stresses the need to stabilize inflation rates closer to the 2% target, currently at an undesirable 3%. 
Today’s FOMC meeting focused mainly on concerns about inflation, despite recent signs of improvement. The decision to keep rates steady reflects the Fed’s cautious approach amidst economic uncertainties. 
<h2 class="wp-block-heading" id="h-cryptocurrency-market-reacts">Cryptocurrency Market Reacts</h2> 
After the FOMC announcement, the cryptocurrency market saw a flurry of activity. Santiment, a top financial analysis firm, noted the community’s hopes for rate cuts to lift both equity market caps and cryptocurrencies. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “many in crypto were hoping for this May 1st decision by the US #Fed to result in interest rate cuts, which would in turn bolster equity market caps, and cryptocurrencies by association.”&nbsp; <cite>Santiment</cite>
</blockquote> 
Although rates remained unchanged, there was a noticeable bounce in crypto prices, with altcoins experiencing breakout moments. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “many altcoins have enjoyed some breakouts immediately after the news, as traders begin to feel more comfortable making speculative #buys again now that this month’s decision is behind them.” <cite>Santiment</cite>
</blockquote> 
<h2 class="wp-block-heading" id="h-rollercoaster-ride-for-bitcoin-price">Rollercoaster Ride for Bitcoin Price </h2> 
Bitcoin faced a significant dip ahead of the FOMC meeting, dropping to lows of US$56,600. However, it managed a modest recovery to US$57,708 following the announcement. 
Bitcoin’s volatility has been influenced by various market events, including ETF launches in Hong Kong and the recent Bitcoin halving event. Despite short-term fluctuations, Standard Chartered predicts a surge to US$150,000 by year-end. 
While short-term volatility persists in the cryptocurrency world, there’s a consensus on long-term growth. The Fed’s decision to maintain rates indirectly supports market stability, providing investors with a sense of continuity and averting panic-induced reactions to potential rate hikes. 
Also Check Out: <a href="https://coinpedia.org/news/crypto-market-turn-bearish-as-sell-in-may-and-go-away-got-real-bitcoin-to-fall-near-47k/">Crypto Market Turn Bearish As “Sell in May and Go Away, Got Real,” Bitcoin To Fall Near $47k&nbsp;</a>

FOMC Meeting Updates Revealed: Here’s How Crypto Markets Are Reacting

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